September 22, 2000
FOR IMMEDIATE RELEASE
CONTACT: CHRISTOPHER GOETCHEUS
STATE RATING BUREAU RECOMMENDS 14.1% RATE DECREASE
FOR 2001 AUTO INSURANCE
(BOSTON, MA) The State Rating Bureau (SRB) today filed its recommendation to cut private passenger automobile insurance rates by an average of 14.1% in 2001. The filing, by the actuarial arm of the Massachusetts Division of Insurance, came in response to the auto insurers' August 11th request for an overall increase of +2.5%. If approved, the rate decrease proposed by the SRB would translate into an average decrease of about $133 per insured vehicle in Massachusetts. The average statewide annual rate per vehicle would be approximately $806.
"The evidence presented by the industry over the last several months doesn't support the need for an increase. In fact, it reflects a need for an overall decrease in the average rate," said Robert MacNicholl, Director of the State Rating Bureau. "We differ with the industry's projections for losses, expenses and profits for the coming year. The evidence they've submitted admits, among other things, that our loss projections have been more accurate in recent years."
The State Rating Bureau today filed evidence in the Main Rate portion of the 2001 Private Passenger Automobile Insurance case. By law, Insurance Commissioner Linda L. Ruthardt is to issue a decision in the case by December 15, 2000.